Economy

According to the British chancellor, Philip Hammond, austerity is apparently over. But for the super-rich it looks like it never even began! The latest figures reveal that the international billionaire class made more money in 2017 than in any year in recorded history.

Two weeks ago, Trump announced tariffs on another $200bn worth of imports from China. The announcement was met with protests from the Chinese, as well as big business in the US. China responded with tariffs on another $60bn of imports from the US. This trade war reveals the frictions that have been developing for some time between the imperialist powers, and threatens to plunge the world into a new recession.

While all eyes are on the unfolding trade war between China and the United States, another crisis in the world economy is threatening to spin out of control. Since April, Argentina and Turkey have seen their currencies collapse and inflation spiral. Other so-called emerging economies such as Indonesia, India, Brazil and South Africa are also coming under similar pressures.

World politics is a never-ending drama with Trump as President of the United States. From the G7 bust-up to the North Korea negotiations, he never fails to create waves. Now Trump is preparing a full-scale trade war with China, with potentially devastating consequences for the world economy.

On Thursday the deadline passed for an agreement between Trump and Canada, Japan, Mexico and the EU on trade. Failure to reach an agreement meant that the steel and aluminium tariffs threatened by Trump came into force. With this, Trump has begun the process of unravelling globalisation. On Saturday, the G-7 finance ministers met and the 6 non-US ministers came together against the US, expressing their “unanimous concern and disappointment” over the US decision.

The serious representatives of capitalism are petrified that the ongoing trade dispute between China and America could erupt into a full-blown economic war. In a recent editorial for the Financial Times, associate editor Martin Wolf described US President Donald Trump’s latest plan to reduce the $337bn US-China trade imbalance by imposing $200bn worth of tariffs on Chinese goods (over two years) as a “crazy” act of “fiscal irresponsibility”. But there is method in Trump’s madness. He is predictably applying his particular art of negotiation: threaten, bully and bluster – then strike a deal. However, Trump’s bellicose behaviour risks further destabilising an already-precarious global economy.

After placing hefty tariffs on solar panels, washing machines, steel and aluminium, Trump is now picking a fight with China. His latest proposals target $60bn worth of Chinese exports, and threaten a trade war between two of the largest economies in the world.

In the last week, US President, Donald Trump announced his intention to raise tariffs on steel and aluminium imports, threatening to start a dangerous trade war with the rest of the world. This could plunge the world economy into another deep slump.

The last two months have seen renewed worries about the economy. It was meant to be a period of optimism, with plenty of positive figures on unemployment, wage growth and so on. Yet in spite of the figures, the markets are jittery and the bourgeois is gradually realising that none of the problems that caused the crisis in 2008 have been resolved. If anything, they have become even worse.

Despite all the euphoria in the past period about the world recovery and booming stock markets, events have taken a sharp turn for the worse. Over the past week, stock markets around the world have plunged.